What are bank CD's paying?

What Are Bank CD's Paying?

How much are CD’s paying? Believe it or not, today’s average CD rates are 0.28%!

Without a doubt, investors are looking for safe places to earn money. Wild swings in the global equity markets are most likely here to stay.

In the eighties and early nineties banks paid a respectable amount of interest. Safe savings rates have declined ever since. By keeping interest rates low, the federal reserve drove investors to look elsewhere for higher rates of return.

That isn’t always a conservative move which is why so much money stays in traditionally ‘safe’ savings vehicles.

But can we call the bank a ‘safe’ savings vehicle?

What if it cost you money to save your money in the bank? Would you be comfortable with that?

If you remember that taxes must be paid on interest you make from bank accounts and the rising cost of inflation against our dollar, your bank CD’s are yielding a negative return. In essence we would be paying the bank to hold onto our money.

If you're looking for alternatives that are sensitive to your conservative needs and sensitive to your approach to investing consider a brief conversation where we can share some strategies that are available and may be beneficial for you.

Regards,

Brandon Archibald, The Ivy League Advisory Group, LLC --- Author

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All written content is for information purposes only.  It is not intended to provide any tax or legal advice or provide the basis for any financial decisions.  Opinions expressed herein are solely those of “The Ivy League Advisory Group, LLC”, and our editorial staff.  Material presented is believed to be from reliable sources; however, we make no representations as to its accuracy or completeness.  All information and ideas should be discussed in detail with your individual adviser or qualified professional before making any financial decisions.